Page 50 - Personal Underwriting Mandates & Guidelines - Binder product rules & addendums - Version 1

Terminology
Loss of Pro ts Insurance Loss Ra o
Market Value
Material Fact
Misrepresenta on
Mutual Insurance Company Negligence
New For Old
O er
Outstanding Claims Reserves
Package Policy
Par al Loss
Policy
see BUSINESS INTERRUPTION INSURANCE. the ra o of claims to premiums.
the price at which an investment can be sold or bought at any speci c me.
anything which would a ect the judgement of a prudent underwriter in accep ng or deciding terms for a risk.
a false statement of a material fact which can be innocent or fraudulent.
an insurance company owned by its policyholders, i.e. it has no shareholders. failing to act in what the law considers to be a reasonable manner.
insurance where the replacement value of the property which has been lost or damaged is payable without deduc on for deprecia on.
the communica on of the proposed terms of a contract by one party to another
the funds put aside by Insurers to cover claims that have been incurred but not yet paid.
a policy into which several di erent types of insurance have been combined.
a loss of less than the total value of the property, or a loss of less than the full Sum Insured on a policy.
wri en evidence of the terms of an insurance contract.
Loss Preven on
ac vi es undertaken to prevent losses from occurring.
Malicious Damage
damage resul ng from the deliberate, willful or wanton act of any person, or persons, commi ed with intent to cause damage. The term excludes loss or damage caused by the .
Material Damage Warranty
before interrup on insurance is e ec ve, a material damage claim under other property insurances must have been admi ed.
Misdescrip on
a false descrip on of a material fact.
Mortgage Bond
a loan made for the purpose of purchasing, adding to or improving property.
Name
an underwri ng member of Lloyd's.
Net Claim
the Insurer's own share of claim payments a er deduc on of the amount payable by the reinsurers.
Non-disclosure
the failure to disclose material facts before entering or renewing a contract of insurance. Non-disclosure of facts that would have in uenced the underwriter's decision to accept business or to impose terms and condi ons on the policy may render the policy voidable.
Opera ve Clause
the clause in a policy which sets out the circumstances in which the Insurers will make claim payments.
Outstanding Losses
claims not yet paid where es mated gures are used in the Insurer's accounts.
Pairs and Sets
a clause usually found in an All Risks policy, which s pulates that the Insurer will pay no more than the propor onate value of any ar cle or part that is one of a pair or set and may be damaged, lost or destroyed. Any special value that the item has as part of a set is not taken into account.
Peril
a con ngency or fortuitous happening which could cause losses.
Policyholder
the Insured person.
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Binder Claims Mandates and Guidelines – 2015/2016